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tv   Mad Money  CNBC  December 3, 2013 11:00pm-12:01am EST

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my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friend, i want to make you money. my job is not just to educate you, but entertain you so call me at 800-743-cnbc. with the dow seek 95 points and the s&p dropping and at one point the selling was far worse and it looked like we could be
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in the midst of a major rollover. still today like yesterday, the buyers and sellers did real soul-searching, and what exactly are they pondering? basically, they're trying to figure out if good news about the economy is bad news for stocks or is the opposite the case, as the economy improves should we like stocks more? it's a first-class quandary that we have to dive into headlong on "mad money" if we're going to figure out the market's move. it's distracted and a parlor game and we find you the best stocks and the best opportunities. the only focus on the fed's next move the last three years, you missed some of the single best moments to invest in our lifetimes. i regard that as terrible. i regard it as shameful because this fed-centric world presumes that the market is one big stock that is sent higher or lower by ben bernanke and janet yellin and it's the market as a
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marionette. my favorite credo is the opposite. the stocks represent companies and the companies march to many different drum e not just the fed drummer. some companies do better than higher interest rates and like the minerals and oils and most important, many companies do better because their managements are smart or incentive to create value. if you spend all of your time waiting for the fed to tell you what to do -- you missed so many positive restructures, mergers, spinouts, breakups. ♪ hallelujah you might have missed the revolutions from tablets to smartphones or the oil and gas markets domestically because of new technologies that allow them to get oil and gas out of stone. these were all secular changes that occurred during the last three years unimpeded by any form of washington intervention, washington, congress or the fed. most of the time people had to pay up toy bah these winning stocks, but every once in a
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while, what you get in on better prices and unfortunately, the market sales, similar to what you might have seen on black friday are much more like the sales we used to get at the old filene's basement in boston, filene's as we call it. these days many of you may not know much about filene's, but when i was a kid you could go to the basement and they would come in from the upstairs and get marked down from the full prices and those were the days when stores did carry things at full price. the first price cut was almost never the last. if merchandise didn't sell on day one the price was cut again on day two. that's right. you got another cut and then again on day three until it finally found -- >> buy, buy, buy! >> buys are. a cashmere sweater at $80, down 10%. and you say that's still pricey and i'll wait until tomorrow, and it would be marked down
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another 10% the other day. then you have to make a choice. do you nab it or wait for a lower price on wednesday. or would someone buy it after someone would buy it on wednesday? i can't tell you how many times we the merchandise would be gone and that's the missed market. so is this monday and you're paying too much for that sweater called the stock market? is it tuesday and the price might be right? should we wait until tomorrow for a better deal or will the opportunity be gone by then in we've been down for three days in a row and certainly an oddity in this market. some people will pay anything for that sweater and the stock. they don't care. other people think the sweater has moth holes in it and no price worth paying and that's the situation zee to worry about and that's where we are right now, in between. some people think the stock prices are going higher and they think the fed is in control of the market and when we see weak data we know the fed will keep the sweater from being marked down far more and we have to
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pounce, and they don't care all that much about the fed. they think stocks have moved so much that they're forecasting better earnings and unless the economy in this country and around globe starts growing then these estimates won't be met and the stocks will be taken out and shot, so these two cohorts are at definitive, cross purposes. you think i'd know not to press them after nine years. let's see how this plays out on a given day because today is extraordinary as a demonstration. we have car sales this morning. they were amazing and the best in six years. bullish, right? sure, its it's bullish if you think that the car companies think it's a lot of money and the fed only controls the price of the sweater that's the stock market. that camp is now scared to death because of these strong sales. why should the fed keep helping to get the economy moving when we're selling cars, big-ticket cars so obviously and they're
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fretting the good news for the important sector of the economy and it's actually bad news for the market as a whole. these people aren't buying that sweater here. they want to wait and they figure they can pick it up in a couple of days much lower and cheaper. what happens if we get a weak employment number when the labor department releases the non-farm payroll on friday. they will step up and take the sweaters, but it was enough to come off the side lines and pay. graver people. it's even tougher than that, they see that walmart and target are doing poorly, that's where america shops and maybe there are others who say, wait a second. these don't contain cybershopping. now here's where "mad money" comes and this is most important. we aren't looking at the market as a whole here. that is a waste of time by people who are not rigorous or don't want to spend the time to do homework. we're looking for individual stocks with individual stories
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that are improving and stocks that can't wait for wednesday's price reductions because the discount might be gone by then. let's take the obvious opportunity. i've been telling you apple may have a huge deal with china mobile and they just bought a company that might allow them to monitor what's buzzing in social media and it could be a prelude to a much larger initiative. the holiday season could be huge. sure, apple was indeed up today, but there were moments, moments where it was barely rallying and no doubt in my mind that if the market hadn't been get as beatdown from the pull from the s&p 500 apple would have been up 25 pins except at the 15. the darn thing is still a bargain because it will be caught in the sell-off and therefore be given at a discount to you even as it seems like a hugely expensive stock. it's darn cheap, people. the market sale gave you the opportunity to buy apple at a better price than you deserve. there are dozens of apple-type situations and it's a good numbers, right? they all went lower, the
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positive auto sales news is bad for the -- and we have high-quality stocks like johnson & johnson, one of my fifes. smirk, my favorite company, peanut butter. both would have been substantially higher and i wanted to buy the oils and stick around, i'll tell you which ones are the best values and these are the kind of sweaters worth pouncing on before someone else nabs them up. right now the market is truly confused and confusion is a negative for stocks. i suspect there will be more markdowns. nevertheless, the sweaters will be moved eventually. hey, maybe you'll start buying one tomorrow. john in california. >> hi, jim. how are you today? >> i don't know. i got bit by a spider. it's killing me. what's up? >> i tried to call you four and a half months ago on the airline industry and i wanted to thank you for the us air pub, when i told you how high do you think they could go?
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>> now that this deal is done, this stock has now sold off more than 10% from its high. a lot of this is because oil started bouncing again, but when we've seen these big deals occur these stocks have a second year better than the first year. i want you to buy u.s. airways and it won't be a name for american in a very short period of time. hey, why don't we go to fozzy in colorado. fozzy? >> hey, jimmy, big boo-yah from denver, colorado. hey, i was looking at some restaurant companies today, and i think yum's going do fine coming out of that china chicken thing, but then i looked at chipotle. it looks like they're giving away shares to insiders at 16% a year, diluting the shares. >> right. i'm not sure about the dilution.
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we're looking at the earnings. chipotle's earnings are good. i think it's been pricey, but it's always been pricey and yum we had news that i was not that enthusiastic and i still like yum, but let's go back to the core issue here. i think the restaurant stocks are undervalued and i think there are buys and i'm looking at the equities. those are the real cheap ones. let's go to keith in -- ooh, alabama. keith. >> hey, jim, how are you doing? >> it i guess it depends whether i went to auburn or alabama. >> my mouth came up to my jaw here today, and quick question for you. a little bit about my background. i work offshore in the oil industry on the gulf, and i don't always have the ability to manage my stocks. okay and there are times when there might be a week without cell phone service, phone service or internet. >> okay. >> i had a tried and true one that i sold.
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i bought it in the late '90s and sold in mid-2000s. i'm looking for something to park. >> first of all, your job, look around. bp is actually great. exxon's great. you're in the cusp of one of the great oil and gas revolutions. you know more. i will tell you this, i read through dunkin -- good situation. i read through the krispy kreme conference call and i read it again and i felt i was up against the seahawks. i couldn't understand it. it is impenetrable. i don't like impenetrable situations although i always invite ceos from impenetrable situations to come on the show. what happens when you confuse the market, until this resolution i suspect there could be more markdowns. it's shopping season after all so consumers should do some shopping. maybe you should buy some things
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that are on sale. "mad money" will be right back. >> coming back, tech turn around. did spite the debt for the pc, hewlett-packard is down a staggering 90% this year. will they continue to innovate and surge even higher? cramer checks the technicals when he goes off the charts. and later. clash on the catwalk, luxury retailer finch is the next player on wall street, but does he have enough flair to take on shares and what could dress your portfolio for success? plus, ready to refuel, natural gas changed the outlook for energy independence in north america and chances are it's using technology. after a steep drop on earnings, is it time to fill up at a discount or is it full of hot air? all coming up on "mad money."
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don't miss a second of "mad money," follow @jimcramer on twitter. have a question? tweet cramer, #madtweets and send an email to cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. ♪ i want to spread a little love this year ♪ [ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. some of the best offers of the year. this is the pursuit of perfection. some of the best offers of the year. every day we're working to and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations,
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in a moment where the broader market seems to be stalled or at least worst or temporarily, don't forget we're less than a month away from the end of the year and that means the stocks are winners and they can't keep charging higher when the selling is over. i'm talking about the outperformers of 2013. they're reporting good numbers in the most recent earnings period because they hedge mutual fund managers who are desperate to improve the performance will continue to buy until the new year begin, but just because the stock's been anointed that doesn't mean the stock stops on november 1st.
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we're talking investing and not trading and that can make them fabulous performers in 2014, too. here i go. this is one i hated for a long time and i do love this one. i love this. hewlett-packard. take hewlett-packard, an annoying stock if there ever was one, it's up 93% for the year. and it was off the charts by the top-notch technician who the managing director of barcheta capital management and take a closer look at just what is propelling hewlett-packard higher. he does individual stocks and he does them well. last week hpq did something very unique for a big-cap tech company, it reported an excellent quarter and the stock jumped to the highest price in four months. the wild ride is far from over. check out hewlett-packard's daily charger. when the stock broke out after the last earnings report that was a very big deal because this put the finishing touch on what is known as a cup and handle formation. this is a formation and we have seen this over and over again. it is almost foolproof. it is a pattern with a u-shaped bottom followed by a handle
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where it trades slightly lower in a tight range. the thing about a cup and handle is it is one of the most reliable patterns. according to ponzi, you see this when the stock is exercising its demon, so to speak and hewlett-packard certainly needed a good exorcism. the cup part of the pattern which was formed over three months from august through november indicates that the stock is working its way through selling pressure and the price is finding equilibrium and then you get the handle where the last of the weak-handed holders get shaken out and leave you with the stronger shareholder base. once the stock breaks out of the handle part of the formation like hewlett-packard did last week and then it is considered complete and that's a big, flashing green light and they take the cup and handle patterns. to a chart, they've worked and fabulous signal that there's more upside coming and are you paying attention, and he looked at the chart and saw a tea cup. take a look at the moving
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average convergence or mack d at the bottom of the chart and we've seen this work, too. helps technicians and the trajectory and right about the time the hewlett-packard have broken up with the cup and handle pattern and they have a powerful buy signal is what's called yes, a bullish crossover where the black line crosses above the blue line. we've seen this many times going off the charts and it's been a pretty reliable sign that a stock is headed higher. >> that's exactly what ponzi sees here and the bears and hewlett-packard have been beaten back and the bulls still aren't totally onboard yet and that's skeptical and they can cause the stock to soar higher. when you take a step back at hewlett, you want to look at the weekly chart. this is really incredible. you will see a cup and handle formation that he was talking about on the daly and it isn't just any old cup and handle and it isn't what you would call a fractil, f-r-a-c-t-i-l cup and handle, it looks the same whether you zoom in or zoom out.
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on the daily chart you can see the cup and handle. it turns out that a smaller cup and handle from the daily is actually the handle in a much larger cup and handle pattern. look at that, right? and there -- look at that little guy right there. in other words, it's a cup and handle within a cup and handle. it's like one of those russian nesting dolls and this pattern goes all of the way back to february of next year so we have a real backbone to this move. it's just broken out of two, not one, but two super bullish formations and the weekly and daily charts and just like the convergence indicator is flashing a buy signal on the weekly, the crossover. how high can hpq go. it's a big question, right? they give ponzi a pretty clear forecast. you mentioned the depth of the cup and that tells me how the stock can rally from where we are now. ponzi can see it rallying from
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33 just on this part, but based on the much bigger part of the weekly, ponzi comes up with a target of 42. i'm not tall enough for it although i was back about 15 years ago, and that's 53% higher than where the stock is right now. that's right, 53%. and you know what? i don't have any trouble with that. i don't have any trouble believing in it at all because you know why? i too am bullish about hewlett-packard because when i look at hewlett-packard's fundamentals i see a classic turnaround story playing out here and one that can send this stock substantially higher and when you consider better than expected quarter, it is clear that ceo meg whitman has a comeback brewing here. she's streamlining operations and aggressively cut costs. oh, man, has she ever -- oh, and on the conference call, the chief financial officer and she's real good said there could be more incremental cost savings and better to be a shareholder than a worker.
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most importantly whitman knows that management needs to figure out what a company's good at and put the chips behind it. she's bet on pcs, printers and information technology not for you, but for the enterprise. a much stronger part of the business than personal computers for individuals which are shrinking rapidly. the expertise at the corporate level and coming to the huge amount of share, much more than i could have possibly taken in a 90-day period and it wasn't talked enough in the research. beyond that, they're not executing well, and sometimes -- dell, which is about to take on a huge amount of debt to take themselves private and something that will make them a much weaker competitor, and i don't think they will be able to give on price and now they can focus returning cash to trade holders. it is bountiful to dividends and larger buybacks and they cleaned up a lot of the balance sheet. admittedly, hewlett-packard may
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have jumped the gun having repurchased 30% of the share count over the last seven years, stupid, but the shareholders are reaping the rewards from the float. last, but not least, the stock is incredibly cheap even after this move. seven times last year's earnings estimates and i'm calling on one of the cheapest stocks from the s&p 500. the falls by yours truly are going -- in fact, this one actually may be a screaming buy. stay with cramer. coming up, luxury retailer benz is the new fashion player on wall street, but does it have enough flare to take a share from michael kors. cramer's looking at both brands to see what could dress your portfolio for success.
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[ male announcer ] they are a glowing example of what it means to be the best. and at this special time of year, they shine even brighter. come to the winter event and get the mercedes-benz you've always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho! [ male announcer ] lease the 2014 e350 for $579 a month at your local mercedes-benz dealer. what a rough day for the averages, let's not forget that the high-end luxury consumer is doing fine. the rich have plenty of money and they have no problem spending it as we head into the holidays that's why we can use the best decline to pick out the favorite gatsby name, "mad
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money" names that cater to the high-end consumer. the richer differ from you and me. he should have added they spend like crazy even in the toughest times. the best way to play the gatsby consumer has been michael kors, the maker of luxury accessories and apparel has been one of the hottest growth stories out there. it came public at $20. the stock hasn't looked back ever since. the 234% in the after market to $18 and change where it's trading right now. see that? that's kors. this is official. this is not a mets outfit, by the way. some people criticized me for that. so when i hear people about talking about vince holdings and the fresh-faced ipo that came public just a few weeks ago and that is this, it's kind of a michael kors look alike, you better believe that grabs my attention.
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vince had a fabulous initial public offering when the stock saw 20 bucks and spiking 43.3% on the first day of trading, but it hasn't done much since then which i think begs the question is vince really the next michael kors or should we refuse to be impressed by its red-hot initial public offering especially since the ipo market has been on fire and averaged the 2013 ipo giving you a 29.9% return according to renaissance capital. the only way to resolve this is with a good, old-fashioned "mad money" face-off, death march on the catwalk -- who's clear than i am? kors versus vince. when you compare them there's not much of a contest. there's no way vince holdings is the next michael kors or the son of kors, it might be -- i'm not kidding, michael kors can' estranged second cousin once removed. i'd buy vince holdings any day
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of the week, and with that said, vince is a serious wall street catalyst coming down once we reach the new year so why is kors the better investment than vince? this is a vince, too, by the way. okay low pressure let's get down to business here. kors is a superior company. remember, we do these one-on-one stock duels because they're a terrific way of doing comparative stock picking and you know how important i think that is. first, let's consider what these companies actually do. michael kors is very big into accessories like watches, jewelry and handbags and they have ready to wear clothing and footwear and fragrances and i think this cost a pretty penny, right? you get this from haines for three bucks. it is all about knits and cashmere sweaters and denim, outerwear and footwear and kors is recognizable with 75% brand
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awareness versus just 75% brand awareness for vince. that means vince needs to invest heavily in marketing to get the word out ask that ain't cheap. kors operates in 350 retail stores around the world and they have 154 stores run by licenses. the company gets half of its sales from these stores, roughly 45% from wholesale and they mainly come from the licensing business. vince, on the other hand, has 27 stand alone retail locations and you get 80% of neiman and sacks. selling your own purchase through the consumer, retail price is so much higher. florida, is where neiman's, bloomy's and they don't have much for the distributors. michael kors is growing like a weed. management thinks they can double their base with 352
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stores to 700 locations over the next few years. i believe that is a realistic projection as it is growing by 20% per year. that's incredible, plus kors uses the shop within a shop model to sell their purchase at the department stores like this stuff. a shop within the shop will boost the productivity of a brand by 25% in the given store, but for kors that are seeing a 75% boost. that's amazing. as for vince, well, let's just say they can increase the store count to 40 locations by 2016 and that's off of the 21 full-price stores and at the moment we don't even know for sure if the brand has that attraction to explore that expansion. what else? vince is pretty much all domestic at this point. michael kors is starting to grow by leaps and bounds. they saw a $500 program a month ago, they'll be with a billion smackers and i thought you worked in email and it makes 11% of kors' revenue. last quarter michael kors posted a 71% increase in sales and their comp sales, grew by a whopping 16 at tiny retail segment and sales increased by 12% and this is the wholesale business posting 3% growth. michael kors wholesale was up 30%. wow? how about the grows margin? what each companymas ter tt.o 1 an year's earnings estimates with a 40% long-term growth rate. kors sells for 27 times next year's earnings with the 25% growth rate. so vince trades slightly less than one times. that's why people like the vince so much. it trades at a small business to nce, a ideser a big uik vceolnghacf1 o overshp planitashef1 and that means all of the nks o treite the deal want coverage on the stock. you get positive research and i
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wouldn't be surprised at all if vince doesn't rally with that. why don't they like it because people love growth. here's the bottom line. vince holdings may be tradable, but michael kors i'm callin i good quarter. good to talk to you. >> same here. same here, pat. >> you're welcome. i purchased j.c. penney at $79 and sold it at 12 and took a long, big loss. do you think i made the right move? also, should i hold on to aro? >> i don't want you to own arrow because that is way too hard. jc penney reported a good novembernth and you sold it the wneannothal ran. tim? >> hey, cramer, i've been doing some bottom fishing on coach. do you think it's reached the bottom or no? >> my partner stephanie link from my charitable trust and she's in the halftime report saying coach is right. she says she likes the way the stores look. she thinks it can could have a real bounce here, and i wou eenn cchan here, and i wou scpn'sho belieth t ae ffntcf no. i don't think so. stay with cramer. tomorrow, kick off the trading day with "squawk on the street," live from post 9 at the nyse. >> you know how hard it is to be cool at my age? >> very. >> a general idea. >> bot arunrsndgo 1 t lhtngou ocrer cf1 o "madon."o 1 [ indisrn and then the ghinrod cf1 o over, are you red skee-daddy? time for the lightning round on cramer's mad money. i'll start wiono1 jason? >> jim, i've read all your boks not a buyofo d e as iankn tt cae because we believe in it. let's go to patsy in michigan, patsy! >> boo-yah, jim cramer from michigan! i just want to tell you, we've got a big game sunday. my lion against your eagles. >> it's tight. -- i'm calling abou lbe liquito c o bn th cssctn lossesndelngf1 tte yis ie of will catch a bid as soon as we get interest rates that go appreciably lower, so let's not sell it now. lumber liquidator, i know it does have operational problems and it is growing like a weed, but i don't want you to jettison oowf1 don't want you to jettison >> let's gto osin lodaf1 >> how's ii you? otidngi ulbu you want pl tt d 'noles. i covered football in 1977 and '78. pam in new jersey. pam! >> hi, pam, it's pam from new jersey, i just want to give you a great big boo-yah shoutout for everything that you do. > wa tsatohe lived in e mr. svobyoarmyo 1
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litle- apecte it. ilies together. >> yes. >> here's my question, regarding epzn. they had a pullback, it's partnered with celgene. what are your thoughts. >> what stock did you mention? you mentioned apple. i would buy apple, what was the sponsored by t.d. ameritrade. what's happening with chart industries? here's a company we've liked for a long time. major maker of cryogenic equipment and as well as lng stores and engine tanks, plus it is an industrial gas division where they make liquid oxygen therapy systems. vince sells for 37 times next year's earnings estimates with a 40% long-term growth rate. kors sells fo 2tis xt cf1 o >> unlike, vince holdings has overship apple and it has the astounding 70% of the company. >> do you lock up and all of that said i do think vince is tradable and let me tell you why. the post-ipo quiet period ends and that means all of the bankers who wanted to rewrite the post-ipo quiet period ends and that means all of the bankers who wanted to rewrite the deal want coverage on the stock. you get positive research and i wouldn't be surprised at all if vince doesn't rally with that. why don't they like it because people love growth. here's the bottom line. vince holdings may be tradable, but michael kors i'm calling it by far the better investment.
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tonight's sell-off gave you a good quarter. i think kors could be the most appointed stocks for 2013 right until year's end. why don't we speak to pat in california. pat? >> hi, jim. good to talk to you. >> same here. same here, pat. >> you're welcome. i purchased j.c. penney at $79 and sold it at 12 and took a long, big loss. do you think i made the right move? also, should i hold on to aro? >> i don't want you to own arrow because that is way too hard. jc penney reported a good november month and you sold it at a lower price, a higher price than it is now. jc penney is not one i want to be in. macy's is a big kors provider, too. i think macy's is the winner that segment so why don't we buy the winner and not the also ran. tim in california. tim?
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>> hey, cramer, i've been doing some bottom fishing on coach. do you think it's reached the bottom or no? >> my partner stephanie link from my charitable trust and she's in the halftime report saying coach is right. she says she likes the way the stores look. she thinks it can could have a real bounce here, and i would defer to her because i've had my head beaten in by coach, and stephanie does like it and i've heard her speak valiantly on scott wapner's show. i think she sounds right. even on some days it does pay to believe that they are different and wearing them together like? no. i don't think so. stay with cramer. tomorrow, kick off the trading day with "squawk on the street," live from post 9 at the nyse. >> you know how hard it is to be
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cool at my age? >> very. >> a general idea. yes. >> both of us are understanding. lack of coolness. >> it all starts at 9:00 a.m. eastern. so i can reach ally ba, but there ar24/7.branches? i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. ♪
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it is time -- it is time for the lightning round on cramer's "mad money." [ indiscernible ] >> play until we hear this sound and then the lightning round is over, are you red skee-daddy? time for the lightning round on cramer's mad money. i'll start with jason in arizona. jason? >> jim, i've read all your books and consider you a mentor. my stock gigamon. >> thank you for being a subscriber and that comes with my charitable trust the and i'm not a buyer of mo and the reason is because i don't really like it and you know that because you're a subscriber is xilinx because we believe in it. let's go to patsy in michigan, patsy! >> boo-yah, jim cramer from michigan! i just want to tell you, we've
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got a big game sunday. my lion against your eagles. >> it's tight. -- i'm calling about lumber liquidators. i bought some shares back about a month ago, and now they've been hit with a class action suit with wall and proctor, and i'm thinking of cutting my losses and selling. >> i don't know, look, i've got to tell you, this is one of those high-growth stocks that will catch a bid as soon as we get interest rates that go appreciably lower, so let's not sell it now. lumber liquidator, i know it does have operational problems and it is growing like a weed, but i don't want you to jettison it right now. too low. >> let's go to ross in florida. ross? >> how's it going? >> pretty good, ross, how are you? >> i have a question about cm p. >> look. it's interesting.
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'nole people do not buy second tier. i'm not kidding, i would buy deere. you want to play that end of thing, let's buy deere and go 'noles. i covered football in 1977 and '78. pam in new jersey. pam! >> hi, pam, it's pam from new jersey, i just want to give you a great big boo-yah shoutout for everything that you do. >> my grandparents lived in merchantville, what's going on? >> i want to say to the late, great, mr. steve jobs you are my second biggest hero, jim. >> much appreciated but i have to tell you to be in the sentence with that guy is a little -- i appreciate it. that's a very nice thing. >> listen, you and i are apple families together. >> yes. >> here's my question, regarding epzn. they had a pullback, it's partnered with celgene. what are your thoughts.
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>> what stock did you mention? you mentioned apple. i would buy apple, what was the other stock you mentioned? celgene, i would buy both of those before i would buy epizyme and it is the number one football team in the country. and that, ladies and gentlemen, is the conclusion of the lightning round! the lightning round is sponsored by t.d. ameritrade. .. change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.
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every day we're working to and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
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what's happening with chart industries? here's a company we've liked for a long time. major maker of cryogenic equipment and as well as lng stores and engine tanks, plus it is an industrial gas division where they make liquid oxygen therapy systems. this stock has been on an epic roll, rallying like crazy because it would make match rag gas vehicles in a major way. we've been behind it all of the way and the stock has had a tough run of late and after a disappointing quarter and it cut its forecast and the stock's fallen $20 and 17% in the last five weeks and management seemed to be a tad less optimistic
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about china and that's a market that's pivotal for earnings growth or should we view this pullback as a buying opportunity in the stock that's given us a 164% gain since we first got behind it in february 2011 so it gets the benefit of the doubt as far as i'm concerned. >> the chairman and president and ceo of chart industries. mr. thomas, welcome back to "mad money." good to see you, sir. >> hi. jim. nice to see you. >> should we be more concerned? >> china is a terrific growth market, but you have an increase in prices for natural gas that slowed things down and it sounded to me like you're worried about competition and you're making acquisitions in china. i'm always worried about their accounting over there is the bloom off the china rosier? not at all, jim. the long-term story hasn't changed a bit and we're still convinced as is everyone else there in the market whether it's
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the natural oil companies and the big engine producers and the big truck vehicle assembler, but it is a pause. >> it is a pause. no doubt. >> there's been a significant increase in prices without an offsetting increase for diesel prices which is expected. >> okay. >> coming up in 2014 because they're rolling out tire emission standard which is require more after-treatment on the truck increases the price of the truck for diesels and it also increases the price of diesel fuel because it will be producing low-sulfur diesel and they're not able to put it in the market so it's rolling back that increase of diesel. >> is that for 2014? second half of 2014? that's what the current thinking is. >> okay, good. and we're seeing some signs of it picking up. >> of course, was there a pause in terms of the rapid growth rate. we were seeing incredible growth coming through the first and second quarters and then toward
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the latter end of the third quarter there was a decided pullback with this natural gas price increase. >> also, you mentioned governmental intervention in pet ro china, you say point-blank, was there turmoil there because of possible government corruption charges. there was for the very senior levels whether it was corruption or political, being on the wrong side. >> okay. that seems to have flowed through. none of the people that we deal, the levels that are in our industry have been affected. there's new senior management and control or in place. >> okay. we expect it to be sorted out. >> all right. you also talked about cost problems both in engineering and construction, but also in the labor and louisiana. >> well, we built the large boxes for the global scale lng liquefiers on the coast in louisiana and that's the only place where you can put them directly on it a ship. okay.
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>> to ship them around the world and we have seen because of the tremendous growth in offshore construction, petrochemical construction down on the gulf coast, we just have gone up dramatically. >> right. >> well, everywhere on the gulf coast whether it's for welders or for engineers. some of the projects that we quoted a few years ago and we're executing on now and through 2004 we're seeing lower margins as a result of that. it's still good work. very good, solid works, but we weren't able to ramp up our productivity as fast as the wages were going up in that market. >> all right. let's look at it from the point of view of 2014, 2015, 2016 because that's the way viewers think of things because they're investors and they're not trading. the long-term view from switching from diesel to natural gas, liquefied natural gas, our country and china, still very positive. >> extremely positive. in fact, the third quarter was
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our strongest quarter ever for north american lng. we're starting to build liquefiers which is the key and that's the constraint and we're getting better availability of the 12-liter engine with larger engines to come so we had a strong quarter for orders for fuel stations, lng fuel stations and also for vehicle tanks and it looks strong going forward. the biggest challenge we have with the market that's growing like this and it means a number of pieces of infrastructure is calling the timing. >> right. >> we respond to our customers. we've added significant capacity, but with our customers or their customers, there are pauses where the infrastructure buildout, the different pieces of the pie get out of sorts and you have to have a correction. >> ink it's a reset and the people should relook at chart and you had a good piece by morgan stanley saying the same thing we just talked about. sam thomas, president and
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industry of chart industries. the story, the long-term story is intact for investors. traders, okay. you saw them playing with fire. stay with cramer. [ female announcer ] what if the next big thing, isn't a thing at all?
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everyone likes the oils when they're hot and ready! >> buy, buy, buy, buy, buy! >> no been like them when they're cold and sliding. >> sell, sell, sell, sell, sell! >> everyone likes them when the oil futures go up and up and no
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one likes it when the futures are in a downward trend like today and no one's paying attention at all to the pathetic price of natural gas except for the $4 after being in the $3 region for ages. maybe it's not that pathetic after all. now is the time to start buying, that's right, now. first i would like to return to the best of the best because i'm the best of breed guy and in this case we have two that are ripe for the pickings, noble energy and eog resources and that's the sale outside of denver and huge kicker in the mediterranean. i don't know if you're following what's going on in russia and the uk right now, but president putin is making a power grab that could position him in the threat for western europe. i'm not making this stuff up, although he's trying to prevent. anyway, when you hear you need to think about energy, because the west gets the gas from the east and that makes russia an economic opponent that could choke western europe off, it's big enough to feed all of europe and it's the energy alternative
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to putin and it's only gone up in value even as the stock is going down precipitously from $79 to $69 and eog resources and dominant player plummeted from 188 to 165. do you want to buy this thing when it's fly or do you want to get a decent one for the stock. do you buy the national oil well and it's splitting it into two companies and reads the technological reader and it's the only real guy and that one's been strained and pained, but the sec issues are now in the rear-view mirror, i think. meanwhile, you keep getting paid the 8.9% yield and that should work to the benefit of shareholders. okay, so maybe these are all too out there for you, how about buying the world will's largest oil company, the one warren buffett likes and the ones that refuse to come down even today and i'm talking about exxon
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mobil and it had the good production growth in ages and things willy only get better in the future and warren buffett, exxon and it's pretty controversial and bp. the oil spill could ultimately bankrupt the company because there seems to be no sensation for the payout, how do i put this to be diplomatic, peripheral victims and it won an important appeal that has been pretty much, i would say put an end to the outsized payments and now will be viewed once again as an oil company and the cheapest of the majors. with oil, you have to buy the stocks when they're cold. these are cold as ice, just the right time to start your picking. stick with cramer. mad about "mad money?" immerse yourself into cramer's world while you watch the she with zeebox, on the phone, tablet or on the web, get sneak peek, go behind the scenes or join the conversation. download the free app today for the ultimate cramerican adventure.
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[ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪ [ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. some of the best offers of the year. this is the pursuit of perfection. guys... [ female announcer ] pillsbury cinnamon rolls, with cinnabon cinnamon, are an irresistible sunday morning idea. nothing calls them to the table faster. make breakfast pop! it's one of the terrific lightning round callers from new jersey. she says she's an apple family and she likes celgene. think about that, she likes celgene and knows it. it's obviously a very good company. she knows that apple's terrific,
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but she wants to buy the speculative one, epizyne. no, what you do is buy the one you know and like and don't necessarily go for some sort of long ball. you have the ground game. pick them on the first down and that's what this is about. first downs. there's always a bull market somewhere and i promise i will find it for you. i'm jim cramer. i will see you tomorrow! 29-year-old raffaello follieri is at the top of his game. he's got a successful real-estate business pulling in millions. he's hobnobbing with world leaders. >> so let's give mr. follieri a big hand. >> narrator: and he's found love with hollywood a-lister anne hathaway. >> he had this beautiful girlfriend, $100 million -- he had all the credibility in the world. >> narrator: but this italian is about to see his american dream fall apart... when his fraud is exposed. >> he wanted to live the lifestyle of the rich and famous, but he wanted to do it with everybody else's mone

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